---
title: What is the difference between Members and Partners in an LLC?
description: Understand the difference between members, managers, and responsible parties in an LLC structure.
---

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# What is the difference between Members and Partners in an LLC?

In an LLC, the terms **“member”** and **“partner”** usually mean the same thing: an individual or entity that owns part of the company. However, within the structure of an LLC, there are different roles that clarify responsibilities and rights:

- **Manager:** Manages the company without owning any percentage of the business (ownership). They must be listed on state documents and have the authority to sign contracts and legal documents on behalf of the company.
- **Owner-Manager:** Manages the company and also holds an ownership percentage. They must be registered with the State, indicating their percentage of ownership.
- **Owner:** Holds a percentage of the company but does not participate in management. They do not need to appear on the state registry.
- **IRS Responsible Party:** The designated individual to interact with the IRS. They sign Form SS-4 to obtain the EIN and handle tax matters.

**Note:** If a Manager holds or acquires an ownership percentage, they become an **Owner-Manager**.

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